Get Your Business Ready for Same Day ACH Electronic Payments

Oct 20, 2015

A new rule by the Electronic Payments Association (NACHA) will enable same-day ACH payments. NACHA moves money between banking institutions with a guarantee of 48-hour transactions. Generally all financial institutions are required to participate because if the sender participates, the receiving bank must follow suite. When same-day ACH payment is adopted it could change everything, and your business should be ready or it will be left behind.

Here is how the process will work. Same Day ACH payments would be processed twice per day: a morning submission by 10:30 a.m. ET with settlement at 1:00 p.m. ET, and an afternoon submission by 3:00 p.m. ET with settlement by 5:00 p.m. local time. The employee would get access to funds by the end of the bank’s business day (if not sooner). Almost every type of ACH payment will be available for same-day processing. International transactions and transactions below $25,000 are also eligible.

The rule changes will happen gradually over the next three years starting from September 2016. The rules will unfold in three phases:

Phase 1, begins September 23, 2016: the Federal Reserve will release ACH credit transactions for same-day processing at 10:30 a.m. ET and 3:00 p.m. ET-generally for use cases like person-to-person payments, hourly payroll, and same-day bill pay.

Phase 2, begins September 15, 2017: Same day ACH debits will then be added to be utilized by more bill pay uses like mortgage, utility, loan and credit card payments.

Phase 3, begins on March 16, 2018: Consumers will gain access to funds from Same Day ACH credit transactions by 5:00 p.m.

All presented effective dates and subsequent phase descriptions are contingent on receiving written confirmation from the Federal Reserve. The Federal Reserve’s backing is important to ensure Same Day ACH is the same across the 12,000 financial institutions in the U.S.

Although Same Day ACH is a few years from being fully implemented, it will have a major impact on merchants. Merchants should stay alert to any new information that comes out as the rule change moves forward.  It is possible that the rules and deadlines can change before the September 23, 2016 deadline. eMerchantBroker.com is a low hassle, low cost payment processor that can help you process ACH Electronic payments. Our agents will protect your transactions and increase your profits.

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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